Fitch Downgrades Saudi Arabia – UPI.com

LONDON, April 12 (UPI) — Assumptions about the mid-term trajectory for crude oil prices means the economy of Saudi Arabia may face significant pressures, Fitch Ratings said Tuesday.The credit rating agency said it downgraded the long-term rating for Saudi Arabia one notch from AA to AA-. Structurally, the Saudi economy is weaker than its peers and economic growth for the oil-rich kingdom is expected to slow considerably.The ratings agency said it expected the price for crude oil would average $35 per barrel for 2016 and increase to $45 per barrel by next year. Using the global benchmark Brent as a standard for reference, the forecast from Fitch is nearly 20 percent below the level during trading early Tuesday. If its price assumption holds true, Fitch said there would be “major negative implications for Saudi Arabia’s fiscal and external balances.”